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Bonds Insurance
Bond insurance also known as financial Guaranty insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default.
Product Information
Bond insurance also known as financial Guaranty insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default.
The various bonds which we issue and their characteristics are as follows;
Bid/Tender Bonds:
Our company issue bonds to cover bids/tenders for contracts being awarded. The Bond is simply a Guarantee to the Employer that the contractor having submitted the accompanying Bid for the contract in question shall not withdraw such bid for any reason if the contract is awarded to him. i.e he shall accept the contract if awarded.
Advance Payment Bond:
This is a guarantee given to a principal on behalf of the contractor for the advance payment or mobilization to the contractor by the principal for the execution of the contract entered into by both parties.
Where a percentage of the contract value is to be given to the contractor to start work, the insurance bond would be issued against failure to utilize the advance payment/mobilization for the execution of the project
This bond therefore guaranteed that the contractor will utilize the advance payment for the execution of the job and in the event of his failure to do that the bond will indemnify the principal to the extent of the non-execution of the contract.
Performance Bond
Performance Bond is a guarantee given in favour of the principal on behalf of the contractor confirming that the contractor will execute the contract within the terms of the contract and the bond agrees to indemnify the principal in the event of non-performance and/or partial performance by the contractor.
However, the liability of the guarantor, is reduced by the extent of the performance of the contractor.
Premium can be paid through the following channels:
- Complete a direct debit form
- Complete a standing instruction form with your bank
- Electronic transfer from your account to our account
- Deposit into our bank account
- Please include your name and policy number on all payments.
* Please do not pay cash to/through our Financial Advisor or staff.
